Real Estate Investing

Real estate investing is probably one of the most reliable investments in this financially chaotic era.  Even with all the problems afflicting the real estate market, real estate investing is still one of the most viable and healthy investments.  The real estate market goes through waves and right now, it is ripe with bargain deals.  If an investor is willing to sit on a real estate investment for a little while, he/she should start to see a turnaround in a couple of years.  Real estate investing is one of the most secure investments anyone can make but it is an investment made with long-term goals in mind.

Real estate investing is an important decision and anyone interested in investing in real estate should consult with a real estate lawyer before committing to a real estate purchase contract.  Real estate investing can take the form of an income producing property, commercial property or an investment property that an investor wants to hold on to for a while.  A real estate investor should understand the differences in the rules and regulations that apply to each as well as the benefits and liabilities associated with each kind of real estate investment.  Real estate investing should not be a hasty decision nor should it be a decision an investor makes under pressure.

Some of the more popular investment options in real estate include:

  • Commercial Property
  • Investment Property
  • Income Producing Property
  • Rental Property
  • Vacation Homes
  • Timeshares
  • Co-Operatives (Co-Ops)
  • Real Estate Investment Trust (REIT)

Real Estate Investment Trusts or REITs are another way of investing in real estate.  These assets can include office buildings, shopping centers, and mortgages secured by real estate.  In order to qualify as a REIT, a company must meet certain conditions.  Some of these conditions include the requirement to pay 90% of taxable income to shareholders annually.  The three main types of REITs include Mortgage REITs, Equity REITs, and Hybrid REITs.  The most popular for investors are the Equity REITs.  An Equity REIT involves investing in real estate and making money from the rents that are collected.

If you think real estate investing is the right option for you, consult with a real estate lawyer to review your opportunities so you can make an informed decision that will yield the desired return on your investment.

 

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